The Hindu Business Line : Rana Sugar net doubles; to pay Re 1

THE Chandigarh-based Rana Sugars Ltd, a joint venture of Punjab Agro Industries Corporation Ltd, has informed the BSE that the board of directors has proposed a dividend of 10 per cent for the year ended March 2004.

Net sales for the year amounted to Rs 8,508.40 lakh. Net profit more than doubled to Rs 709.68 lakh from Rs 344.73 lakh in the previous year. Earnings per share increased from 99 paise to Rs 2.04.

The company is all set to tap the lucrative and burgeoning high-end, high-margin industry by foraying into manufacturing of sugar derivatives.

The board has also approved setting up a monoethylene glycol project (MEG) at a cost of approximate Rs 120 crore and expansion plans for bagasse-based power projects to increase power generation capacity from 20 MW to 30 MW at a cost of Rs 45 crore and supply of surplus power to Punjab State Electricity Board.

The board also proposed setting up of a distillery unit with capital outlay of Rs 35 crore to manufacture ethanol. To fund this diversification and expansion plan, the board has proposed to consider issue of rights at a premium of Rs 15 per share.